IV.10.
SCIENCE AND INNOVATION: ESTONIA
ESTONIA
Hot STI issues
Improving Estonia’s long-term growth through:
●
Increasing the quality and efficiency of public research and reforming the public R&D funding system.
●
Strengthening the private sector’s R&D investment and innovation capability and the business
environment for innovation.
●
Strengthening the future supply of PhDs in S&E.
General features of the STI system: Estonia is a small
OECD economy and its government’s priorities
include R&D and innovation. Over the past decade,
Estonia has strengthened its R&D and innovation
system through market-oriented reform of the
former Soviet system. Estonia has one of the
highest GERD growth rates in the OECD area, at
11.8% a year during 2005-10. BERD increased
significantly from 0.42% to 0.82% of GDP over the
same period. In 2010, the business sector
performed 50% of GERD, up from 45% in 2005.
Nonetheless, business innovation remains below
the OECD median in terms of R&D expenditure
(Panel 1 (d) ), top firms (1 (e) ), patents (1 (f) ) and
trademarks (1(g)), and it is concentrated in a limited
number of high-technology sectors, such as ICT,
biotechnology, and financial and telecom services.
Estonia has a relatively strong public and university
research system (1(a)(c)), a solid human capital base
(1(s)(t)(u)(v)), good connections to global knowledge
networks (1(q)(r)) and Internet infrastructure and
use is at the OECD median (1(k)(l)(m)(n)).
Recent changes in STI expenditures: In spite of the
economic crisis, GERD rose from 1.28% of GDP in 2008
to 1.63% of GDP in 2010. The government funds 44%
of GERD, the business sector 44%, and foreign sources
11%. For 2007-10, government-financed GERD and
industry-financed GERD increased from 0.45% to
0.71% and from 0.49% to 0.72% of GDP, respectively.
Forecasts suggest public R&D budgets are likely to
increase in the coming years.
Overall STI strategy: The Knowledge-Based Estonia
II Research and Development and Innovation
Strategy 2007-13 sets the key objectives and
technolog ical priorities for R&D. The main
objectives are to increase the quality of both public
research and private-sector innovation and the
potential for long-term growth. These objectives
are to be achieved by developing human capital
(e.g. increasing the attractiveness of researcher
careers); increasing enterprises’ innovation
capacity; developing policies for long-term growth;
and reorganising public-sector R&D and innovation
to increase efficiency (e.g. modernising R&D
infrastructures). The key technologies identified in
the strategy are ICTs, biotechnology and material
technologies. The strategy for 2014-20 will be
formulated during 2012.
STI policy governance: The Estonian Research
Council was created by the 2011 amendment of the
Organisation of Research and Development Act to serve
as a funding agency; it has absorbed the previous
Estonian Science Foundation and Archimedes
Foundation. Its missions are to: foster basic and
applied R&D, support researchers, encourage
international co-operation and co-ordinate and
implement national and international training and
educational and research programmes.
Key figures
Labour productivity, GDP per hour worked in USD, 2010
(annual growth rate, 2005-10 )
Environmental productivity, GDP per unit of CO2 emitted in USD, 2009
(annual growth rate, 2005-09)
284
26.4
(+3.2)
1.77
(+2.5)
GERD, as % of GDP, 2010
(annual growth rate, 2005-10)
GERD publicly financed, as % of GDP, 2010
(annual growth rate, 2005-10)
1.63
(+11.8)
0.73
(+12.1)
OECD SCIENCE, TECHNOLOGY AND INDUSTRY OUTLOOK 2012 © OECD 2012
OECD SCIENCE, TECHNOLOGY AND INDUSTRY OUTLOOK 2012 © OECD 2012
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IV.10.
SCIENCE AND INNOVATION: ESTONIA
Figure 10.13. Science and innovation in Estonia
Panel 1. Comparative performance of national science and innovation systems, 2011
Estonia
a. Competences and capacity to innovate
Entrepreneurship
200
100
150
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b. Interactions and human resources for innovation
Human resources
200
100
150
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Note: Normalised index of performance relative to the median values in the OECD area (Index median = 100).
285
IV.10.
SCIENCE AND INNOVATION: ESTONIA
Science base: Over the last decade, Estonian public
research has improved significantly. The four public
universities play an important role in R&D and stand
slightly above the OECD median in terms of
international scientific publications (1(c)). However,
Roadmap outlining the need to upgrade existing
research infrastructures and create new research
facilities. It lists 20 research infrastructures of
national importance and serves to guide public
investments in R&D infrastructures over the next
university-performed GERD fell from 52% in 2000 to
38% in 2010. The Estonian government has adopted
several prog ramm es to support knowledg e
production and to increase universities’ excellence,
competitiveness and internationalisation. The
amendment of the Organisation of Research and
Development Act introduced two new types of R&D
evaluation: regular evaluations to assess R&D quality
against internationally recognised criteria and
targeted evaluations designed to improve research in
specific fields.
10-20 years.
Business R&D and innovation: During 2001-10 BERD
grew faster than in other OECD countries. Yet, as a
share of GDP and of patenting by firms, BERD remains
well below the OECD median. Moreover, just 58 firms
account for 75% of BERD. The Estonian government
intends to stimulate business R&D and innovation
with direct funding (e.g. innovation vouchers) and
non-financial measures (e.g. the Innovation and
Entrepreneurship Awareness and Competence
Raising Programme 2009-13).
Entrepreneurship: The conditions for entrepreneurship
and innovation are below the OECD median (1(h)(j)).
Efforts are under way to promote entrepreneurship
(e.g. Innovation and Entrepreneurship Awareness
and Competence Raising Programme 2009-13;
S t a r t - u p E s t o n i a) . In a d d i t i on , f os t e r i ng
entrepreneurship in HEIs is part of the Government
Action Plan 2011-15.
ICT and scientific infrastructures: Investments in
R&D infrastructures are largely funded by EU
structural funds. The total budget for 2007-13 is
USD 320 million, split between investment in
buildings (USD 165 million) and in research
equipment (USD 157 million). In 2010, the
government adopted a Research Infrastructures
286
Knowledge flows and commercialisation: Efforts are
being made to strengthen interactions between the
scientific and business communities (e.g. the
University of Tartu has adopted a new governance
structure which involves external partners in the
university’s work and the government has a
programme for training doctoral students in cooperation with business).
Human resources: The Estonian population’s
tertiary education level is above the OECD median
(1 (s) ). In view of the low rate of S&T doctoral
graduates, the Archimedes Foundation created
in 2010 a Unit for Science Communication to coordinate several publicly funded initiatives and to
manage a programme to raise young people’s
interest in S&T careers (budget of USD 6.5 million
for 2009-13). Also, the Higher Education Strategy
and the R&D and Innovation Strategy have as an
objective 300 PhD graduates a year by 2015.
Emerging technologies: The Estonian government
has launched six national R&D programmes in
suppo r t of R &D in energy technology, I CT,
biotechnology, health, environment technology and
material technology. The Centres of Excellence and
Competence Centres programmes also clearly
target ICTs, environment and new materials, health
care and medicine.
Green innovation: Energy, sustainable development
and environm ental iss ues are increas ingly
important government priorities. This is reflected,
for example, in the Estonian Energy Technology
Programme, a co-operation programme involving
research, business and the state, to develop oil
shale technologies and new, mainly renewable,
energies.
OECD SCIENCE, TECHNOLOGY AND INDUSTRY OUTLOOK 2012 © OECD 2012
IV.10.
SCIENCE AND INNOVATION: ESTONIA
Figure 10.13: Science and innovation in Estonia
Panel 2. Structural composition of BERD, 2009
As a % of total BERD
OECD median
OECD median (2005)
Estonia
Estonia (2005)
Industry
100
High-tech
manufacturing
80
SMEs
60
40
20
Low-knowledge
services
High-knowledge
market services
0
Medium- to low-tech
manufacturing
Large firms
Services
Panel 3. Overview of national innovation policy mix, 2010
Estonia
OECD sample median
Estonia (2005)
Public research
University-centred (1)
Public lab-centred (1)
Basic research oriented (1)
Applied/experimental research oriented (1)
Civil oriented (2)
Defence oriented (2)
Generic (2)
Thematic (2)
Institutional block funding (3)
Project-based funding (3)
Public support to business R&D and innovation
Support to business R&D and innovation (4)
Support to public research (4)
Direct funding of business R&D (5)
100/ 0
1.
2.
3.
4.
5.
Indirect funding of business R&D (5)
75/25
50/50
25/75
0/100
Balance as a percentage of the sum of HERD and GOVERD.
Balance as a percentage of total GBAORD.
Balance as a percentage of total funding to national performers.
Balance as a percentage of the sum of HERD and GOVERD funded by government and higher education and components of (5).
Balance as a percentage of the sum of indirect funding of business R&D and innovation through R&D tax incentives and direct funding
of BERD through grants, contracts and loans.
Source: See reader’s guide and methodological annex.
1 2 http://dx.doi.org/10.1787/888932690377
OECD SCIENCE, TECHNOLOGY AND INDUSTRY OUTLOOK 2012 © OECD 2012
287